The revenue may disappoint some, but the profits are a welcome sign.
— Jason Clampet
Cheap soda and burgers helped bring more people into McDonald’s.
The fast food company said Tuesday that sales in the U.S. rose 4.1 percent at existing locations during the third quarter, thanks to $1 drinks and its two for $5 promotion called McPick 2. McDonald’s also said pricier burgers, which are stuffed with crispy onions, kale or guacamole, helped boost sales, too.
Overall the Oak Brook, Illinois-based company reported net income of $1.88 billion, or $2.32 per share, in the three months ended Sept. 30. That’s up from $1.28 billion, or $1.50 per share, in the same period a year ago. Adjusted earnings came to $1.76 per share, a penny above what analysts expected, according to Zacks Investment Research.
Revenue fell 10 percent to $5.75 billion, missing analyst expectations of $5.8 billion. The company said it brought in less revenue as it switches more stores from company-owned restaurants to ones owned by franchisors, especially in China and Hong Kong.
Shares of McDonald’s Corp., which are up 34 percent since the beginning of the year, rose $1.08 to $164.40 in premarket trading Tuesday.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research.